Regional news sources report South Korea’s financial authorities are working on legislation to formally allow initial coin offerings (ICOs) in an effort to appear more welcoming to the larger financial technology community.

South Korea Plans to Make ICOs Legit

Online news source The Korean Times reported this week “Financial authorities have been talking to the country’s tax agency, justice ministry and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met,” it quoted an anonymous source as insisting.Read more...

What a week for the peninsular nation, 대한민국 Republic of Korea. Moon Jae-in’s administration appears to have brokered a potential meeting between heads of state to avoid nuclear holocaust, and in more practical terms local media is widely reporting regional internet giant Kakao will deepen its involvement with cryptocurrency in South Korea by incorporating crypto into its various, hugely popular, platforms.

Concerns from Russian traders that they may be unable to access Bittrex once the exchange’s new terms of service come into effect this month appear to have been alleviated. Starting March 9th, the exchange will formally block residents of North Korea, Iran, the Crimean region, Syria, and Cuba from accessing its trading services.

The South Korean financial authorities are investigating 20 publicly listed companies for unfairly using cryptocurrency claims to boost their share prices. Crypto-related companies do not always follow through with their plans after seeing their share prices surge.

Investigating 20 Companies

The South Korean Financial Supervisory Service (FSS) has been investigating 20 crypto-related companies listed on the country’s stock exchange, Kosdaq, for unfair practices, local media reported.

The country’s financial authorities have also issued a warning to investors “that a number of unfair trade transactions were found in so-called ‘virtual currency-related stocks’ in the stock market,” Yonhap detailed. The Korean Banker elaborated: Read more...

South Korea will “encourage” banks to interact with cryptocurrency exchanges, regulators have said in a surprising development in the country’s narrative.

Choe: We Want ‘Normal’ Transactions

As local news media outlet Yonhap News Agency reports Tuesday, Choe Heung-sik, governor of the Financial Supervisory Service, has announced government organs will “support” all legitimate transactions in the cryptocurrency trading space.

The comments were delivered during a meeting which included representatives from South Korea’s exchange industry.

The emphasis appeared to be on legal versus illegal transactions, with the promise of support “if normal transactions are made.”Read more...

South Korea is now considering a licensing scheme for cryptocurrency exchanges in a major U-turn on its previous suggestion to ban them.

Govt. To Debate ‘Exchange Approval System’

As local news media outlet Business Koreareports Monday, lawmakers from a dedicated “cryptocurrency task force” are examining the option of following in the footsteps of New York and Japan in vetting exchange operators before allowing them market entry.

The New York scheme is several years old and faced teething problems, including backlogs and exorbitant costs, while 2017’s move by Japan received considerable demand as well as broad acclaim.

South Korea’s government has confirmed it has “no intention” of banning or “suppressing” cryptocurrency trading in fresh comments on the industry.

‘No Intention To Ban’

In comments Wednesday quoted by Reuters, finance minister Kim Dong-yeon, who earlier in January said that a shutdown was still a possibility, finally ended apprehension surrounding the future of cryptocurrency trading in the country.

Kim had faced a 200,000-strong petition demanding he be fired from his position after the comments, which along with those by justice minister Park Sang-ki, sent shock waves through cryptocurrency markets and sparked public outrage.

South Korean cryptocurrency holders have described a potential exchange ban as “not a big problem” as Seoul launches an investigation into insider trading.

Exchange Ban Has ‘Capital Outflow’ Risks

Speaking to mainstream western media about the current turbulent regulatory climate in the country, one holder said opening an account on a foreign exchange or using connections abroad as proxies were both feasible options should the government enact a ban.

In case the government shuts down all local exchanges, investors can always go abroad and open an account there. […] I can ask my friends who study abroad or travel there myself. It’s not that big of a problem. Read more...

What happens in Asia often has a knock-on effect on trading in Europe and the US later in the day. A grim picture has been painted today as all cryptos, bar one or two, are in the red and falling. Police and tax inspections on exchanges across South Korea could be the cause alongside misreporting by the mainstream media of an outright crypto ban.Read more...

A security firm has found evidence that North Korea may be using mining software to obtain Monero and transfer it to a Pyongyang university.

Running a regime while sidestepping pesky sanctions is an expensive endeavor and one that North Korea seems to have plenty of experience in. However, according to a California-based cybersecurity firm, cryptocurrency could be a cost-effective solution.

Sneaky Monero Mining

ABC News recently reported that the firm, AlienVault, discovered a crypto mining software application, which appeared to be created last month, being unknowingly installed on victims’ computers. The mined crypto in question, Monero, was then transferred to Kim Il-sung University in Pyongyang. Read more...